Banks Rewarded for Being Efficient, Says Indian Government

NEW DELHI—India’s government will inject 69.9 billion rupees (US$1.13 billion) in capital into nine state-run banks in the fiscal year ending March, it said in a statement Saturday.

Indian banks need a heavy capital infusion to meet tighter global capital requirements and boost reserves to cushion against rising bad loans. According to government estimates, the capital requirement could be as high as 4.60 trillion rupees over the...